Dear Ontex Shareholders, In our ongoing efforts to provide broader communications and market information, we are pleased to provide you with Industry Sector Bulletins discussing current market opinions and/or conditions that affect the price, supply, and demand of Gold. The following article details the current performance of Gold and its future outlook for 2007 where analysts see “a potentially bigger price movement.” Resource companies focused on Gold, such as Ontex Resources Ltd. will benefit from this increase in Gold prices. Recently, Ontex announced results from its Brookbank Gold Deposit one of the largest undeveloped resources of northern Ontario. Click Here to view this press release. For Further Information on Ontex Resources Ltd. please feel free to click the following link to visit the Company’s Investor Relations Hub. Ontex IR HUB Regards, AGORACOM Investor Relations Chartists See Higher Targets for Gold Mar 29, 2007 Analysts said there was a direct relationship between sideways moves and the gold price, with a longer consolidation phase often resulting in a potentially bigger price movement.
Since gold had been broadly in a consolidation pattern for several months, it gave a huge platform for a price rally.
"Short term, the prospect is generally for a little bit more range-trading," Phil Roberts, analyst at Barclays Capital, said.
"Long term, I think it's going higher. The uptrend has done nothing wrong and we are going to substantially higher levels for gold later this year."
Analysts said an area between $670 and $675 was crucial in the short run, while a break of the level might lift gold towards $700. But a drop to $640 could drag prices to around $635.
"What you have got is a market which is essentially consolidating just below resistance. Once you get above $667, your next upside target is going to be $677 and $690-$691," Karen Jones, technical analyst at Commerzbank, said.
"Long-term is neutral to bullish, contained within the upchannel. I am looking for a move back towards the high of $730 we got in 2006."
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